K-Electric Limited (KEL) announced that the National Electric Power Regulatory Authority (NEPRA) has approved write-off claims amounting to Rs50.01 billion for the previous control period, under the Multi-Year Tariff (MYT) framework.
The Karachi-based power utility disclosed this development to the Pakistan Stock Exchange (PSX) through a notice on Tuesday.
The KE said that the decision was made in response to KEL’s petition for write-off claims amounting to PKR 76.1 billion.
According to the company, the write-off claims were approved for the period from FY2017 to FY2023, with the final approval subject to the fulfilment of specific conditions outlined by NEPRA.
KEL had previously submitted its claims in compliance with the statutory requirements of the NEPRA’s MYT Reconsideration Decision of July 2018.
K-Electric stated that it is currently reviewing the decision and may pursue additional remedies if required, in line with the applicable statutory provisions. The company’s efforts are focused on ensuring compliance with all regulatory criteria and continuing its operations with the required financial adjustments.
Last week, in its detailed order, NEPRA said that it approved Rs50 billion as KE’s “full and final claim” out of the total Rs76.03 billion requested by the utility. The approved write-offs relate to long-outstanding bills from chronic defaulters, which KE had argued were impossible to recover despite best efforts, a position supported by the company’s auditors.
However, NEPRA emphasised that in the event KE recovers any of the written-off amounts in the future, the gains must be passed back to consumers through immediate adjustments in quarterly fuel price mechanisms. “The authority directs KE to continue pursuing recovery… and to submit annual certificates from its auditors confirming the status of such recoveries,” the order stated.
